1 00:00:02,279 --> 00:00:05,640 Speaker 1: Live from the Bloomberg Interactive Burger Studios. This is Bloomberg 2 00:00:05,720 --> 00:00:09,680 Speaker 1: day Break for Thursday, June two. Coming up the shower. 3 00:00:10,000 --> 00:00:13,480 Speaker 1: It is day two of congressional testimony for FED Chair J. Powell. 4 00:00:13,840 --> 00:00:18,200 Speaker 1: Reaction pours into President Biden's proposed gas tax holiday. European 5 00:00:18,320 --> 00:00:21,759 Speaker 1: Union leaders plan to grant candidates status to Ukraine, and 6 00:00:21,800 --> 00:00:23,880 Speaker 1: the FED gets set to release the results of its 7 00:00:23,960 --> 00:00:27,120 Speaker 1: bank stress tests. The Uvaldi school police chief has been 8 00:00:27,160 --> 00:00:30,840 Speaker 1: placed on leave after last month's smash shooting. Plus prosecutors 9 00:00:30,840 --> 00:00:33,560 Speaker 1: say Glene Maxwell to get thirty years in prison. On 10 00:00:33,720 --> 00:00:36,920 Speaker 1: Michael blarm More Ahead, I'm John Stas Sharon Sports comeback 11 00:00:36,960 --> 00:00:39,360 Speaker 1: win for the Yankees, loss with the Mats in Colorado, 12 00:00:39,440 --> 00:00:41,840 Speaker 1: be Tampa Bay, and overtime at the Stanley Cup Final. 13 00:00:44,360 --> 00:00:47,920 Speaker 1: That's all s train ahead on Bloomberg Daybreak on Bloomberg 14 00:00:47,960 --> 00:00:51,480 Speaker 1: eleven three, on New York, Bloomberg ninety nine one, Washington 15 00:00:51,600 --> 00:00:55,200 Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine 16 00:00:55,240 --> 00:00:59,080 Speaker 1: sixties and Francisco Sirius x M one nine team and 17 00:00:59,160 --> 00:01:02,240 Speaker 1: around the world on Bloomberg Radio dot Com and via 18 00:01:02,280 --> 00:01:09,319 Speaker 1: the Bloomberg Business Up. Good morning, I'm Nathan Haggard and 19 00:01:09,360 --> 00:01:12,320 Speaker 1: I'm Karen Moscow and ust Dock Index futures are mixed 20 00:01:12,400 --> 00:01:14,600 Speaker 1: this morning, coming up to five o one on Wall Street, 21 00:01:14,600 --> 00:01:16,800 Speaker 1: and we check the markets every fifteen minutes throughout the 22 00:01:16,800 --> 00:01:20,839 Speaker 1: trading day. On Bloomberg. SNP futures down six points down, 23 00:01:20,840 --> 00:01:24,160 Speaker 1: futures down a hundred four Nastack futures higher up, twenty 24 00:01:24,240 --> 00:01:27,800 Speaker 1: three ten year Treasury up fifteen thirty seconds the three 25 00:01:27,800 --> 00:01:30,039 Speaker 1: point oh nine percent, and a yield on the two 26 00:01:30,120 --> 00:01:33,679 Speaker 1: year three point oh one per cent. Nathan, Karen, we 27 00:01:33,760 --> 00:01:37,160 Speaker 1: begin this morning with day two of congressional testimony from j. Powell. 28 00:01:37,280 --> 00:01:39,800 Speaker 1: This morning, the Fed Chair appears before the House Financial 29 00:01:39,840 --> 00:01:44,080 Speaker 1: Services Committee, But yesterday was Pal's most explicit acknowledgement yet 30 00:01:44,280 --> 00:01:47,520 Speaker 1: that raising interest rates could lead to a recession. It's 31 00:01:47,560 --> 00:01:50,600 Speaker 1: not our intended outcome at all, but it's certainly a 32 00:01:50,600 --> 00:01:53,360 Speaker 1: possibility and and frankly, the events of the last few 33 00:01:53,400 --> 00:01:57,920 Speaker 1: months around the world have have have made it more 34 00:01:57,920 --> 00:02:00,440 Speaker 1: difficult for us to achieve what we want, which is 35 00:02:00,440 --> 00:02:03,760 Speaker 1: two percent inflation and still a strong labor market. Powell 36 00:02:03,800 --> 00:02:06,600 Speaker 1: told the Senate Banking Committee the economy is well positioned 37 00:02:06,640 --> 00:02:09,839 Speaker 1: to handle tighter monetary policy. Meantime, Former New York Fed 38 00:02:09,880 --> 00:02:12,959 Speaker 1: President and current Bloomberg opinion columnist Bill Dudley says the 39 00:02:13,040 --> 00:02:16,000 Speaker 1: recession is inevitable within the next twelve to eighteen months. 40 00:02:16,280 --> 00:02:20,119 Speaker 1: I would expect a mild recession like or or two 41 00:02:20,120 --> 00:02:23,400 Speaker 1: thousand and one, not the deep recession like seventy three, 42 00:02:23,520 --> 00:02:26,560 Speaker 1: seventy four, or of course the Great Financial Crisis. Former 43 00:02:26,560 --> 00:02:28,840 Speaker 1: New York Fed President Bill Dudley made those comments on 44 00:02:28,880 --> 00:02:32,440 Speaker 1: Bloomberg Surveillance Catch the program weekdays at seven am Wall 45 00:02:32,480 --> 00:02:35,880 Speaker 1: Street Time on Bloomberg Radio and television. Well Nathan Stocks 46 00:02:35,919 --> 00:02:39,200 Speaker 1: gave up early gains on Powell's recession comments. The market 47 00:02:39,280 --> 00:02:42,600 Speaker 1: veteran Abby Joseph Cohen says, the era of everything going 48 00:02:42,720 --> 00:02:46,760 Speaker 1: up is now over. I think we're now back into 49 00:02:46,800 --> 00:02:49,280 Speaker 1: a period in which it does matter where it's the 50 00:02:49,320 --> 00:02:54,040 Speaker 1: fundamentals of earnings, the fundamentals of margins, the fundamentals of inflation, 51 00:02:54,200 --> 00:02:57,640 Speaker 1: interest rates, and putting that all together in terms of 52 00:02:57,639 --> 00:03:01,680 Speaker 1: appropriate valuation models that will make a big difference for 53 00:03:01,720 --> 00:03:05,160 Speaker 1: investors going forward. Abby Joseph Cohen, who was a former 54 00:03:05,240 --> 00:03:09,119 Speaker 1: senior investment strategist at Goldman Sachs, believes a mild recession 55 00:03:09,160 --> 00:03:11,960 Speaker 1: as being priced into markets. Well, crude oil is taking 56 00:03:11,960 --> 00:03:14,520 Speaker 1: a leg lower care and is concern over global economic 57 00:03:14,600 --> 00:03:18,800 Speaker 1: slowdown intensifies, checking prices Downimex crudes down two dollars fifty 58 00:03:18,840 --> 00:03:21,200 Speaker 1: cents at a hundred three dollars sixty nine cents of barrel. 59 00:03:21,440 --> 00:03:25,000 Speaker 1: President Biden's continuing his push to ease gas prices. It's 60 00:03:25,000 --> 00:03:27,280 Speaker 1: got the latest on that life from Bloomberg's rined A Young. 61 00:03:27,320 --> 00:03:30,600 Speaker 1: Good morning, Nita, Nathan, good morning. President Biden is running 62 00:03:30,600 --> 00:03:33,240 Speaker 1: out of options to ease prices at the pump, and 63 00:03:33,280 --> 00:03:36,360 Speaker 1: in his latest action, he proposes a three month gas 64 00:03:36,400 --> 00:03:40,760 Speaker 1: tax holiday. I suspending the eighteen cent gas tax federal 65 00:03:40,760 --> 00:03:43,640 Speaker 1: gas tax for the next ninety days. We can bring 66 00:03:43,680 --> 00:03:46,680 Speaker 1: down the price of gas and give families just a 67 00:03:46,720 --> 00:03:49,840 Speaker 1: little bit of relief. It's a long shot for President Biden, 68 00:03:49,880 --> 00:03:53,680 Speaker 1: as lawmakers, even his fellow Democrats, quickly signaled they have 69 00:03:53,840 --> 00:03:57,520 Speaker 1: little appetite for the move. Senate Majority leader Chuck Schumer 70 00:03:57,600 --> 00:04:01,000 Speaker 1: says Democrats in his chamber had already attempted a gas 71 00:04:01,040 --> 00:04:05,080 Speaker 1: tax suspension and Republicans blocked it. Live in New York, 72 00:04:05,120 --> 00:04:08,040 Speaker 1: I'm Renita Young, Bloomberg Daybreak, Right, Reneeda, thank you and 73 00:04:08,080 --> 00:04:10,600 Speaker 1: like you say, support for a gas tax holiday is 74 00:04:10,640 --> 00:04:15,000 Speaker 1: garnering little support. Bloomberg Politics contributor or Genie shehn Zano 75 00:04:15,120 --> 00:04:17,360 Speaker 1: says it flies in the face of the president's own 76 00:04:17,480 --> 00:04:22,000 Speaker 1: energy policy. Many people, particularly on the left, are asking themselves, 77 00:04:22,040 --> 00:04:25,479 Speaker 1: you know, essentially, who is Joe Biden. He could have 78 00:04:25,680 --> 00:04:29,520 Speaker 1: used the challenge in Ukraine and the challenge with prices 79 00:04:29,560 --> 00:04:32,200 Speaker 1: to push for renewables. You know, the old saying, don't 80 00:04:32,279 --> 00:04:34,640 Speaker 1: let a good crisis go to waste. Why hasn't he 81 00:04:34,920 --> 00:04:38,839 Speaker 1: pushed for something that people on the Democratic side believe in. 82 00:04:39,200 --> 00:04:42,520 Speaker 1: Bloomberg Politics contribute or Genie shehn Zano spoke with Our 83 00:04:42,560 --> 00:04:46,000 Speaker 1: Washington corresponded Joe Matthew on Bloomberg Sound on Catch the 84 00:04:46,000 --> 00:04:49,240 Speaker 1: Show weekdays at five pm Easter and on Bloomberg Radio. Well. 85 00:04:49,240 --> 00:04:52,039 Speaker 1: Another major story in Washington were following this morning. Karen 86 00:04:52,040 --> 00:04:54,080 Speaker 1: has talked from both sides of the aisle that a 87 00:04:54,120 --> 00:04:57,400 Speaker 1: gun safety bill could soon pass the Senate. Bloomberg said, 88 00:04:57,440 --> 00:05:01,320 Speaker 1: Baxter has the story. Senate my noority leader Mitch McConnell 89 00:05:01,360 --> 00:05:04,000 Speaker 1: seems to be on board. But I'm mainly concerned about 90 00:05:04,600 --> 00:05:07,599 Speaker 1: is dealing with the issues that have been brought to 91 00:05:07,640 --> 00:05:10,840 Speaker 1: the fore by these mass shutings, which are directly related 92 00:05:10,880 --> 00:05:15,000 Speaker 1: to school safety and mental health, and Senate Majority Leader 93 00:05:15,080 --> 00:05:18,400 Speaker 1: Chuck Schumer says passage should be soon. The bill is 94 00:05:18,440 --> 00:05:22,159 Speaker 1: real progress, it will save lives, and it is my 95 00:05:22,240 --> 00:05:26,760 Speaker 1: intention to make sure the Senate passes this bill before 96 00:05:26,800 --> 00:05:28,800 Speaker 1: the end of the week. They hope to beat their 97 00:05:28,839 --> 00:05:32,520 Speaker 1: summer recess. In San Francisco, I'm at Baxter Bloomberg Gay 98 00:05:32,560 --> 00:05:36,040 Speaker 1: break and thank you for turning. Overseas. European Union leader 99 00:05:36,040 --> 00:05:38,760 Speaker 1: has planned a grant candidates status to Ukraine. The move 100 00:05:38,800 --> 00:05:41,599 Speaker 1: will come at the EU summit that's beginning today in Brussels. 101 00:05:41,600 --> 00:05:44,440 Speaker 1: We get more from Bloomberg's Maria today. Oh, even though 102 00:05:44,480 --> 00:05:47,000 Speaker 1: it is seen as a given and there's no surprise 103 00:05:47,040 --> 00:05:50,920 Speaker 1: it will happen by tomorrow, Ukraine being granted this candidate 104 00:05:51,080 --> 00:05:53,480 Speaker 1: status it is pretty historic. The question is how much 105 00:05:53,480 --> 00:05:56,760 Speaker 1: will it change for the country overnight. Probably not a lot. 106 00:05:56,800 --> 00:05:59,560 Speaker 1: And we should also notice that even if you're a 107 00:05:59,600 --> 00:06:02,760 Speaker 1: country you had given this prdusy status, it doesn't mean 108 00:06:02,800 --> 00:06:05,920 Speaker 1: the accession talks are going to happen quickly or swiftly. 109 00:06:06,279 --> 00:06:08,640 Speaker 1: You know, there's many countries in Europe that have applied 110 00:06:08,640 --> 00:06:11,600 Speaker 1: for it. Granted the canory status and then of course 111 00:06:11,640 --> 00:06:14,520 Speaker 1: get stuck in the process for years before they get 112 00:06:14,560 --> 00:06:18,080 Speaker 1: the membership. And Bloomberg's Maria TODAYO and Brussels says Ukraine 113 00:06:18,080 --> 00:06:19,719 Speaker 1: will be told it has to meet a set of 114 00:06:19,760 --> 00:06:22,560 Speaker 1: conditions related to the rule of law, justice and anti 115 00:06:22,600 --> 00:06:25,960 Speaker 1: corruption before joining the EU. In the US, care and 116 00:06:25,960 --> 00:06:28,599 Speaker 1: the Fed releases results from its yearly bank stress tests 117 00:06:28,640 --> 00:06:31,520 Speaker 1: this afternoon. We get more from Bloomberg's Tom Busby. All 118 00:06:31,560 --> 00:06:34,320 Speaker 1: thirty four banks monitored by the Federal Reserve, which I 119 00:06:34,320 --> 00:06:36,520 Speaker 1: have a hundred billion dollars in assets, are part of 120 00:06:36,520 --> 00:06:38,880 Speaker 1: this year's stress test to see if they can withstand 121 00:06:38,880 --> 00:06:42,640 Speaker 1: a hypothetical economic downturn, a crash and the commercial real 122 00:06:42,760 --> 00:06:46,520 Speaker 1: estate market and a surge in unemployment. That number up 123 00:06:46,560 --> 00:06:49,400 Speaker 1: from twenty three lenders last year after some larger regional 124 00:06:49,400 --> 00:06:52,159 Speaker 1: banks like Fifth Third Bank Corp. And Ally Financial got 125 00:06:52,240 --> 00:06:55,039 Speaker 1: to pass. The results will dictate how much capital those 126 00:06:55,040 --> 00:06:57,200 Speaker 1: banks will need to have on hand and how much 127 00:06:57,240 --> 00:06:59,880 Speaker 1: they can return to shareholders in the form of share 128 00:07:00,040 --> 00:07:03,039 Speaker 1: buy backs and dividends. But they'll have to wait until 129 00:07:03,120 --> 00:07:07,440 Speaker 1: Monday to announce any of those Tom Busby Bloomberg Daybreak. 130 00:07:07,520 --> 00:07:10,200 Speaker 1: Thank you, Tom SMP futures down one point right now, 131 00:07:10,320 --> 00:07:15,040 Speaker 1: dal futures down seventy two, NASTAC futures up thirty eight points. 132 00:07:15,080 --> 00:07:17,920 Speaker 1: Straight ahead your latest local headlines in the Check of Sports. 133 00:07:17,960 --> 00:07:24,640 Speaker 1: This is Bloomberg five oh seven on Wall Street where 134 00:07:24,600 --> 00:07:26,800 Speaker 1: at sixty one degrees in Central Park. It's still dealing 135 00:07:26,800 --> 00:07:28,960 Speaker 1: with some roadwork on the New Jersey Turnpike car lanes. 136 00:07:28,960 --> 00:07:31,320 Speaker 1: We'll get to the details on that Shortland traffic first. 137 00:07:31,360 --> 00:07:33,400 Speaker 1: Michael Barr has more on what's going on in New 138 00:07:33,480 --> 00:07:36,160 Speaker 1: York and around the world. Good morning, Michaul, Good morning. 139 00:07:36,240 --> 00:07:39,800 Speaker 1: Nathan Pete Redondo, the chief of the school District Force 140 00:07:40,120 --> 00:07:44,920 Speaker 1: in Uvalde, Texas, has been placed on administrative leave for 141 00:07:45,160 --> 00:07:48,520 Speaker 1: his delayed response the last month's mass shooting at around 142 00:07:48,600 --> 00:07:52,080 Speaker 1: elementary school. A gun been killed, nineteen students and two 143 00:07:52,120 --> 00:07:55,480 Speaker 1: teachers in the attack as police officers stood by for 144 00:07:55,560 --> 00:07:59,640 Speaker 1: more than an hour. Meanwhile, Democratic State Senator Roland Guterres 145 00:08:00,000 --> 00:08:03,320 Speaker 1: as he filed a freedom of information request against the 146 00:08:03,360 --> 00:08:06,560 Speaker 1: Texas Department of Public Safety, but has yet to hear 147 00:08:06,560 --> 00:08:09,760 Speaker 1: back from the agency. We're frustrating because we're getting half 148 00:08:09,800 --> 00:08:12,920 Speaker 1: truce in you Windo, a lot of finger pointing, UH 149 00:08:12,960 --> 00:08:15,600 Speaker 1: and that's been the case in day one with DPS. 150 00:08:15,880 --> 00:08:20,040 Speaker 1: Senator gu Terriss spoke to kat r K. The January 151 00:08:20,080 --> 00:08:22,760 Speaker 1: six Committee holds its fifth hearing today. The focus will 152 00:08:22,800 --> 00:08:25,760 Speaker 1: be on the pressure former President Trump exerted on the 153 00:08:25,880 --> 00:08:31,120 Speaker 1: Justice Department to overturn the presidential election results. Federal prosecutors 154 00:08:31,120 --> 00:08:35,240 Speaker 1: say Galine Maxwell, the British socialite convicted of engaging in 155 00:08:35,280 --> 00:08:39,400 Speaker 1: a ten year sex trafficking scheme with former boyfriend Jeffrey Epstein, 156 00:08:39,440 --> 00:08:43,520 Speaker 1: deserved to spend thirty to fifty five years in prison. 157 00:08:43,960 --> 00:08:48,200 Speaker 1: Maxwell will be sentenced on June. New York City's subway 158 00:08:48,200 --> 00:08:52,800 Speaker 1: system may only reach about a pre pandemic writership by 159 00:08:52,880 --> 00:08:55,960 Speaker 1: the end of twenty two, lower than the eight percent 160 00:08:56,080 --> 00:08:59,960 Speaker 1: forecast the m t A had been anticipating. Meanwhile, authority 161 00:09:00,000 --> 00:09:02,520 Speaker 1: he's planned to place cameras on subway cars in an 162 00:09:02,520 --> 00:09:06,199 Speaker 1: effort to increase safety. A train shooting in San Francisco 163 00:09:06,280 --> 00:09:09,400 Speaker 1: has left one person dead at another injured. Authorities say 164 00:09:09,440 --> 00:09:11,840 Speaker 1: they are still looking for a suspect behind the shooting 165 00:09:12,080 --> 00:09:15,840 Speaker 1: near the city's Castro neighborhood. Officer Katherine Winters is with 166 00:09:15,880 --> 00:09:19,559 Speaker 1: the San Francisco Police. We are working together information which 167 00:09:19,600 --> 00:09:22,599 Speaker 1: will include surveillance footage in any other footage front of 168 00:09:22,679 --> 00:09:25,640 Speaker 1: any Trent officer. Winders says it happened during the Heart 169 00:09:25,679 --> 00:09:28,160 Speaker 1: a Pride week with police say the attack does not 170 00:09:28,280 --> 00:09:31,559 Speaker 1: appear to be related to events in the area. FDA 171 00:09:31,679 --> 00:09:34,400 Speaker 1: officials are investigating the death of another infant who was 172 00:09:34,440 --> 00:09:38,240 Speaker 1: given formula made by Abbot laboratories. The infant died in 173 00:09:38,320 --> 00:09:42,079 Speaker 1: January and the FDA was notified. June tenth, Global News 174 00:09:42,120 --> 00:09:45,319 Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake, 175 00:09:45,600 --> 00:09:48,520 Speaker 1: powered by more than twenty seven journalists and analysts more 176 00:09:48,559 --> 00:09:51,040 Speaker 1: than a hundred twenty countries. I Michael Barr, and this 177 00:09:51,160 --> 00:09:58,559 Speaker 1: is Bloomberg. Nathan Alright, Michael, thank you five o nine 178 00:09:58,559 --> 00:10:01,080 Speaker 1: on Wall Street. Time for the Bloomberg Sports Uptake. In Morning, 179 00:10:01,160 --> 00:10:03,920 Speaker 1: John Stashun Morning, Ephan Yankees. We're looking at a rare 180 00:10:04,000 --> 00:10:07,120 Speaker 1: two game losing streak. East Soak Paridis, who hit three 181 00:10:07,120 --> 00:10:09,240 Speaker 1: home runs Tuesday, had another than the first any Tampa 182 00:10:09,240 --> 00:10:11,559 Speaker 1: Bay led four to one, back came the Yankees to 183 00:10:11,720 --> 00:10:14,600 Speaker 1: home runs for Aaron Judge, now up to seven at 184 00:10:14,679 --> 00:10:17,800 Speaker 1: Jose Travino where he yet another huge hit, game winning 185 00:10:17,840 --> 00:10:20,000 Speaker 1: two on over eighth inning. The Yanks one, five to four. 186 00:10:20,400 --> 00:10:23,120 Speaker 1: They're home tonight for Houston. Astros just beat the Mets 187 00:10:23,160 --> 00:10:26,120 Speaker 1: five three. Is Yourdan Alvarez homer twice he's had twenty one. 188 00:10:26,160 --> 00:10:29,360 Speaker 1: Colos Carrasco roughed up left from the parent injury. Only 189 00:10:29,360 --> 00:10:31,439 Speaker 1: a two game series, but the first time the season 190 00:10:31,480 --> 00:10:34,120 Speaker 1: the Mets have been swept over time at the Stanley 191 00:10:34,120 --> 00:10:37,199 Speaker 1: Cup Finals, quickly ahead, Now a Cadrey inside the circle? Catrey, 192 00:10:38,360 --> 00:10:42,800 Speaker 1: where's the fuck? How did that not go in? It? 193 00:10:42,960 --> 00:10:46,480 Speaker 1: Did it did go in? It? Did it? Did? We 194 00:10:46,440 --> 00:10:52,920 Speaker 1: were the Scars? No the CATRAI Getchadre. Cad I didn't 195 00:10:53,000 --> 00:10:57,440 Speaker 1: said okay, yes he Tampa Bay thought Colorado has been 196 00:10:57,440 --> 00:10:59,719 Speaker 1: called for too many men on the ice penalty. With 197 00:10:59,840 --> 00:11:01,600 Speaker 1: the adds one three tow they leave the series three 198 00:11:01,600 --> 00:11:04,439 Speaker 1: one and they can win the Cup in Denver tomorrow night. 199 00:11:04,800 --> 00:11:07,800 Speaker 1: NBA Draft takes place tonight. The Nets host the draft, 200 00:11:07,840 --> 00:11:09,320 Speaker 1: but they don't have a pick. They could have used 201 00:11:09,280 --> 00:11:11,920 Speaker 1: Philadelphia's first round or they elected to save it until 202 00:11:12,000 --> 00:11:14,440 Speaker 1: next year. Nick's have the eleventh pick. Reports they're trying 203 00:11:14,440 --> 00:11:17,400 Speaker 1: to move up Orlando as the first pick, expected to 204 00:11:17,400 --> 00:11:20,640 Speaker 1: take Auburn's Javari Smith. There's golf today near Hartford is 205 00:11:20,679 --> 00:11:23,839 Speaker 1: the PGA Tour announces changed as if they claim they 206 00:11:23,840 --> 00:11:25,960 Speaker 1: were gonna make anyway, but they admit they may be 207 00:11:26,040 --> 00:11:28,360 Speaker 1: moving them up to the competition they're now facing from 208 00:11:28,360 --> 00:11:31,800 Speaker 1: the Live Tour, more prize money. Several tournaments will no 209 00:11:31,880 --> 00:11:35,920 Speaker 1: longer have the field cut midway through. John Stashar Bloomberg 210 00:11:35,920 --> 00:11:39,000 Speaker 1: Sports all right. John thinks SMP future is now down 211 00:11:39,040 --> 00:11:41,840 Speaker 1: one point down, futures down sixty eight. NASSECT futures are 212 00:11:41,920 --> 00:11:45,480 Speaker 1: higher by thirty five points. As we await day two 213 00:11:45,559 --> 00:11:49,560 Speaker 1: of FED Chair J. Powell testimony on Capitol Hill. The 214 00:11:49,559 --> 00:11:53,120 Speaker 1: tenure Treasury is up fifteen thirty seconds. The yield three 215 00:11:53,160 --> 00:11:55,960 Speaker 1: point zero nine percent on the benchmark tenure note and 216 00:11:56,000 --> 00:11:57,960 Speaker 1: the yield on the two year right now three points 217 00:11:58,040 --> 00:12:02,160 Speaker 1: zero one per cent. You're listening to Bloomberg Dave Bred 218 00:12:07,520 --> 00:12:10,040 Speaker 1: Bloomberg eleven three oh weather cloudy through the morning. High's 219 00:12:10,200 --> 00:12:12,040 Speaker 1: cool in the low seventies. Will be in the low 220 00:12:12,080 --> 00:12:14,480 Speaker 1: eighties tomorrow with a mix of sun in cloud Saturday, 221 00:12:14,520 --> 00:12:17,959 Speaker 1: mostly sunny, might hit ninety degrees right now sixty one 222 00:12:17,960 --> 00:12:24,160 Speaker 1: in cloudy in Central Park. Markets, headlines and breaking news 223 00:12:24,240 --> 00:12:26,839 Speaker 1: twenty four hours a day at Bloomberg dot Com. The 224 00:12:26,920 --> 00:12:31,040 Speaker 1: Bloomberg Business atand at Bloomberg Quick Tape is a Bloomberg 225 00:12:31,120 --> 00:12:41,199 Speaker 1: Business Flash and I'm Karen Moscow and European stocks retreating 226 00:12:41,280 --> 00:12:44,840 Speaker 1: this morning. Bon yields tumbling is comments by Federal Reserve 227 00:12:44,920 --> 00:12:48,120 Speaker 1: Chair Jerome Powell, and growth data in Europe stoke fear 228 00:12:48,160 --> 00:12:51,800 Speaker 1: about a global downturn. Oil is extending losses, and the 229 00:12:51,920 --> 00:12:55,200 Speaker 1: yield on German tenure bond Sinc seventeen basis points after 230 00:12:55,240 --> 00:12:58,439 Speaker 1: an indicator of Euro Area economic activity count to a 231 00:12:58,520 --> 00:13:00,840 Speaker 1: sixteen month low. Wh check the market every fifteen minutes 232 00:13:00,880 --> 00:13:03,440 Speaker 1: throughout the trading day on Bloomberg. Taking a look at 233 00:13:03,520 --> 00:13:06,720 Speaker 1: futures this morning, they are mixed. SMP futures up six 234 00:13:06,720 --> 00:13:10,400 Speaker 1: points down, futures down the sixteen and nasday futures are 235 00:13:10,480 --> 00:13:13,400 Speaker 1: up sixty eight. The decks in Germany is down nine 236 00:13:13,440 --> 00:13:15,720 Speaker 1: tenths of upper cent. The ten year treasury up thirteen 237 00:13:15,720 --> 00:13:18,679 Speaker 1: thirty seconds. You'll three point one zero percent yield on 238 00:13:18,720 --> 00:13:21,640 Speaker 1: the two year three point oh one percent. Nine max 239 00:13:21,679 --> 00:13:24,200 Speaker 1: Screwed oil is down two percent or two dollars fifteen 240 00:13:24,240 --> 00:13:26,360 Speaker 1: cents at a hundred four dollars four cents of barrel 241 00:13:26,600 --> 00:13:28,720 Speaker 1: co mexs go down to ten percent or three dollars 242 00:13:28,720 --> 00:13:31,480 Speaker 1: fifty cents. At eighteen thirty four and ninety announced the 243 00:13:31,559 --> 00:13:33,839 Speaker 1: euro is at one point oh five oh nine against 244 00:13:33,880 --> 00:13:36,480 Speaker 1: the dollar, British ground one point one eight, the n 245 00:13:36,559 --> 00:13:39,000 Speaker 1: one thirty five point four. It too, And this data 246 00:13:39,080 --> 00:13:41,480 Speaker 1: check brought to you by Informatica and the Cloud. Your 247 00:13:41,520 --> 00:13:44,320 Speaker 1: data has the power to do the extraordinary. Managed data 248 00:13:44,360 --> 00:13:47,520 Speaker 1: across any location in the cloud for accurate and actionable insights. 249 00:13:47,520 --> 00:13:50,880 Speaker 1: More at Informatica dot com. That's a Bloomberg business flash. 250 00:13:50,880 --> 00:13:52,839 Speaker 1: Now here's Michael bar with more. I'm must going on 251 00:13:53,000 --> 00:13:56,120 Speaker 1: around the world. Michael, good morning, Good morning Karen. Facing 252 00:13:56,200 --> 00:13:59,800 Speaker 1: stubbornly high gas prices, President Joe Biden has urged Congress 253 00:13:59,880 --> 00:14:03,400 Speaker 1: to to spend federal gas and diesel taxes for three months. 254 00:14:03,760 --> 00:14:06,160 Speaker 1: The p g A Tour is countering the Saladi mag 255 00:14:06,160 --> 00:14:10,520 Speaker 1: liv Golf Series. Tour Commissioner j Monahan unveiled his plan 256 00:14:10,679 --> 00:14:13,960 Speaker 1: to increase purse sizes and revamped the schedule in an 257 00:14:13,960 --> 00:14:16,720 Speaker 1: effort to keep players from leaving the tour. In baseball, 258 00:14:16,760 --> 00:14:19,400 Speaker 1: the Yankees one, the Mets lost, the Orioles shut out, 259 00:14:19,440 --> 00:14:22,280 Speaker 1: the National seven zip, the Red Sox won the Giants 260 00:14:22,280 --> 00:14:25,240 Speaker 1: and A's lost in the NHL. After Game four, the 261 00:14:25,280 --> 00:14:28,120 Speaker 1: Avalanche are a game away from winning the Stanley Cup. 262 00:14:28,400 --> 00:14:31,720 Speaker 1: Colorado beat the Lightning in overtime. Three two. Global News 263 00:14:31,720 --> 00:14:34,520 Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake, 264 00:14:34,560 --> 00:14:37,880 Speaker 1: powered by more than journalist and analyst more than a 265 00:14:37,920 --> 00:14:41,640 Speaker 1: hundred twenty countries. Michael bar this is Bloomberg. Nathan alright, Michael. Thanks, 266 00:14:41,640 --> 00:14:44,280 Speaker 1: It's five nineteen on Wall Street Live from the Bloomberg 267 00:14:44,280 --> 00:14:47,600 Speaker 1: Interactive Brokers Studios. This is the Bloomberg day Break. Let's 268 00:14:47,640 --> 00:14:50,200 Speaker 1: get more now in President Biden's call for a three 269 00:14:50,200 --> 00:14:54,000 Speaker 1: month gas tax holiday and progress in the Senate on 270 00:14:54,040 --> 00:14:57,120 Speaker 1: a bipartisan gun safety bill. Lots happening in the nation's 271 00:14:57,160 --> 00:14:59,200 Speaker 1: capitol this morning, so we're pleased to be joined by 272 00:14:59,360 --> 00:15:02,520 Speaker 1: bloombergvern At Congressional reporter Jack Fitzpatrick. He's in our Bloomberg 273 00:15:03,240 --> 00:15:07,440 Speaker 1: studios in Washington, d C. Jack, Good morning. This call 274 00:15:07,520 --> 00:15:10,720 Speaker 1: from President Biden for a three month gas tax pause 275 00:15:11,200 --> 00:15:14,200 Speaker 1: doesn't sound like it's getting the warmest of receptions on 276 00:15:14,240 --> 00:15:16,800 Speaker 1: Capitol Hill or Am I wrong? No, you're You're right. 277 00:15:16,840 --> 00:15:19,320 Speaker 1: And I think the most interesting part of that is 278 00:15:19,360 --> 00:15:23,200 Speaker 1: not the Republican pushback, which is unsurprising, but also that 279 00:15:23,280 --> 00:15:26,760 Speaker 1: there there are key Democrats who don't seem impressed by this. 280 00:15:27,040 --> 00:15:29,960 Speaker 1: You know, there's a statement out by Speaker Pelosi that 281 00:15:30,200 --> 00:15:34,240 Speaker 1: didn't endorse the deal, almost just acknowledged it, but sidestepping 282 00:15:34,280 --> 00:15:37,160 Speaker 1: the substance of it. Uh. And then meanwhile, we heard 283 00:15:37,160 --> 00:15:40,760 Speaker 1: from Peter DeFazio, the Transportation and Infrastructure Chairman in the House, 284 00:15:41,400 --> 00:15:43,720 Speaker 1: who argued that, you know, this would do more to 285 00:15:43,920 --> 00:15:47,600 Speaker 1: take funds away from the Highway Trust Fund than it 286 00:15:47,680 --> 00:15:52,080 Speaker 1: would to make a noticeable difference for individual consumers. Uh. 287 00:15:52,080 --> 00:15:56,960 Speaker 1: There's also no guarantee or or nothing that would presumably 288 00:15:57,040 --> 00:16:00,720 Speaker 1: be in a bill that would in or that all 289 00:16:00,760 --> 00:16:04,280 Speaker 1: the savings go to consumers. You can't tell exactly how 290 00:16:04,400 --> 00:16:08,200 Speaker 1: much of this would go to the owners of gas stations, 291 00:16:08,240 --> 00:16:11,520 Speaker 1: for example. Uh. So there's there seemed to be some 292 00:16:11,600 --> 00:16:14,960 Speaker 1: key Democrats who are not really hot on the idea. Uh. 293 00:16:15,280 --> 00:16:18,520 Speaker 1: Expecting cooperation from Republicans right now on an idea like 294 00:16:18,560 --> 00:16:22,600 Speaker 1: this is uh not realistic, But it's an example of 295 00:16:22,640 --> 00:16:25,600 Speaker 1: the President feeling the need to have a plan, have 296 00:16:25,680 --> 00:16:28,840 Speaker 1: a proposal, make it clear that he's trying to do something. 297 00:16:29,360 --> 00:16:32,000 Speaker 1: Is there a sense Jack that this is almost like 298 00:16:32,040 --> 00:16:35,920 Speaker 1: a desperation move from President Biden to put out something 299 00:16:35,960 --> 00:16:39,200 Speaker 1: like this when other ideas that he's put out there 300 00:16:39,280 --> 00:16:43,000 Speaker 1: so far, like releases from the strategic reserve, haven't worked 301 00:16:43,040 --> 00:16:48,480 Speaker 1: so far. Yes, a sense of desperation has been pretty palpable. Uh. 302 00:16:48,560 --> 00:16:52,200 Speaker 1: You hear it when the President talks publicly about gas 303 00:16:52,200 --> 00:16:55,520 Speaker 1: prices and inflation in general, because he has he has 304 00:16:55,560 --> 00:16:57,880 Speaker 1: made the case that there's only so much he can 305 00:16:57,920 --> 00:17:00,840 Speaker 1: do and putting it in the global person active of 306 00:17:01,280 --> 00:17:05,879 Speaker 1: broader price increases, the war in Ukraine. Uh, things that 307 00:17:05,960 --> 00:17:09,800 Speaker 1: are beyond not only the President's control, but that even 308 00:17:09,880 --> 00:17:12,640 Speaker 1: Congress can only do so much in the short term. 309 00:17:12,720 --> 00:17:16,240 Speaker 1: There can be a longer term debate over energy policy, 310 00:17:16,680 --> 00:17:20,920 Speaker 1: over oil and natural gas production and exports, but when 311 00:17:20,920 --> 00:17:25,720 Speaker 1: it comes to addressing the high prices today, his hands 312 00:17:25,760 --> 00:17:29,160 Speaker 1: are tied to some significant extent, and he has gone 313 00:17:29,160 --> 00:17:32,080 Speaker 1: around making the case that that that's the that that's 314 00:17:32,240 --> 00:17:35,280 Speaker 1: where he is. Uh, And he can pitch some ideas, 315 00:17:35,560 --> 00:17:39,720 Speaker 1: but yes, a sense of desperation is pretty significant. Well, 316 00:17:39,760 --> 00:17:42,800 Speaker 1: it is interesting that we are seeing, on the other hand, 317 00:17:43,240 --> 00:17:47,360 Speaker 1: progress on something that we haven't seen progress on literally 318 00:17:47,440 --> 00:17:51,440 Speaker 1: in decades in Washington, and that is a gun safety 319 00:17:51,480 --> 00:17:55,760 Speaker 1: package on Capitol Hill. Yeah, they're still moving along. Despite 320 00:17:55,840 --> 00:17:59,119 Speaker 1: some negative talk a few days ago. They did come 321 00:17:59,160 --> 00:18:02,840 Speaker 1: to a led agislative agreement. They worked out, UH, their 322 00:18:02,920 --> 00:18:06,720 Speaker 1: their concerns about taking that framework that they announced and 323 00:18:06,760 --> 00:18:10,240 Speaker 1: actually figuring out the details. They're trying to move through 324 00:18:10,280 --> 00:18:13,800 Speaker 1: the procedural votes as quickly as possible in the Senate. UH. 325 00:18:13,840 --> 00:18:15,960 Speaker 1: They did a little bit of a maneuver by holding 326 00:18:16,000 --> 00:18:18,880 Speaker 1: the first procedural vote on another issue and then amending 327 00:18:18,920 --> 00:18:22,200 Speaker 1: that with this bill. But they're they're they're past the 328 00:18:22,320 --> 00:18:25,480 Speaker 1: sixty vote threshold already in that initial procedural vote, and 329 00:18:25,720 --> 00:18:28,720 Speaker 1: there are enough Republicans on board UH to try to 330 00:18:28,760 --> 00:18:32,080 Speaker 1: move this along. And unless there's some significant surprise or 331 00:18:32,480 --> 00:18:35,119 Speaker 1: a group of lawmakers change their mind. Is there a 332 00:18:35,119 --> 00:18:37,920 Speaker 1: sense among Democrats Jack, that this is something that they 333 00:18:37,960 --> 00:18:42,119 Speaker 1: can capitalize on in the November elections or is the 334 00:18:42,200 --> 00:18:45,800 Speaker 1: economy and inflation the overriding concern we have about a 335 00:18:45,800 --> 00:18:48,720 Speaker 1: minute left here. I think both are true. The economy 336 00:18:48,800 --> 00:18:52,000 Speaker 1: is the overriding concern, But I don't think you'd want 337 00:18:52,000 --> 00:18:55,119 Speaker 1: to be a Democrat running for reelection UH and have 338 00:18:55,320 --> 00:18:59,800 Speaker 1: no real response to mass shootings. Uh, Democrats are trying 339 00:18:59,800 --> 00:19:02,840 Speaker 1: to show people that they can accomplish things, and they 340 00:19:02,840 --> 00:19:05,040 Speaker 1: can go campaign on a variety of things. They can 341 00:19:05,040 --> 00:19:07,680 Speaker 1: talk about the infrastructure bill, they can talk about this. 342 00:19:08,000 --> 00:19:11,399 Speaker 1: It doesn't change the underlying fact that families are seeing 343 00:19:11,800 --> 00:19:14,760 Speaker 1: a lot of those savings that they've built up dissipate. 344 00:19:15,440 --> 00:19:18,679 Speaker 1: The price rises have been much more persistent than a 345 00:19:18,680 --> 00:19:21,840 Speaker 1: lot of people thought. Uh, it doesn't undo the frustration 346 00:19:21,880 --> 00:19:25,480 Speaker 1: with the economy, but it's something that Democrats have wanted 347 00:19:25,480 --> 00:19:27,320 Speaker 1: to do for a long time, and an ability to 348 00:19:27,440 --> 00:19:30,920 Speaker 1: have a bipartisan accomplishment is definitely not a bad thing. 349 00:19:31,240 --> 00:19:33,800 Speaker 1: Thanks for this, Jack, and having on with us. Jack Fitzpatrick, 350 00:19:33,840 --> 00:19:37,800 Speaker 1: congressional reporter for Bloomberg Government. With all the developments happening 351 00:19:37,800 --> 00:19:40,480 Speaker 1: in the nation's capital, will have Jack back on later 352 00:19:40,520 --> 00:19:42,840 Speaker 1: in the program to talk more about these stories, as 353 00:19:42,840 --> 00:19:46,120 Speaker 1: well as the latest on the January six hearings. They'll 354 00:19:46,160 --> 00:19:49,400 Speaker 1: be going into a pause as the committee members look 355 00:19:49,400 --> 00:19:52,760 Speaker 1: at yet more evidence into the attack at the capital. 356 00:19:53,240 --> 00:19:57,560 Speaker 1: Right now, SMP futures are up two points now, futures 357 00:19:57,600 --> 00:20:01,480 Speaker 1: down forty five, NASTAC futures are higher by fifty points now. 358 00:20:01,720 --> 00:20:09,399 Speaker 1: This is Bloomberg. Bloomberg eleventh three oh weather cloudy this 359 00:20:09,440 --> 00:20:11,960 Speaker 1: morning with a high in the low seventies. Today will 360 00:20:12,000 --> 00:20:14,280 Speaker 1: be in the low eighties under a mix of sun 361 00:20:14,280 --> 00:20:17,520 Speaker 1: and clouds. Tomorrow could see ninety by Saturday. Right now 362 00:20:17,680 --> 00:20:27,359 Speaker 1: sixty one in Central Park, broadcasting live from the Bloomberg 363 00:20:27,400 --> 00:20:31,080 Speaker 1: Interactive Broker Studio in New York, Bloomberg in Living freon 364 00:20:31,280 --> 00:20:35,360 Speaker 1: to Washington, d C. Bloomberg on to Boston, Bloomberg one 365 00:20:35,359 --> 00:20:38,560 Speaker 1: O six one to San Francisco, Bloomberg N sixteen to 366 00:20:38,600 --> 00:20:41,800 Speaker 1: the country Sirius XM Chado one nineteen and around the 367 00:20:41,840 --> 00:20:45,679 Speaker 1: globe the Bloomberg Business app in Bloomberg Radio dot Com. 368 00:20:45,680 --> 00:20:54,720 Speaker 1: This is Bloomberg Daybreak. It's five thirty on Wall Street. 369 00:20:54,760 --> 00:20:57,680 Speaker 1: Good morning. I'm Nathan Hagar and I'm Karen Moscow or 370 00:20:57,800 --> 00:20:59,840 Speaker 1: just about four hours away from the open of you 371 00:21:00,040 --> 00:21:01,600 Speaker 1: US trading. Let's get you up to date in the 372 00:21:01,600 --> 00:21:03,560 Speaker 1: news you need to know at this hour. We begin 373 00:21:03,600 --> 00:21:07,280 Speaker 1: with day two of congressional testimony from J Powell this morning. 374 00:21:07,280 --> 00:21:10,359 Speaker 1: The fence here appears before the House Financial Services Committee 375 00:21:10,600 --> 00:21:14,639 Speaker 1: Yesterday was his most explicit acknowledgement yet that raising interest 376 00:21:14,720 --> 00:21:17,960 Speaker 1: rates quid lead to a recession. You're seeing growth slow 377 00:21:18,119 --> 00:21:21,280 Speaker 1: from the very elevated levels of last year associated with 378 00:21:21,320 --> 00:21:24,639 Speaker 1: the reopening. You're seeing the beginnings of job growth slowing 379 00:21:24,720 --> 00:21:27,679 Speaker 1: to more sustainable levels, and you know there's risk in that. 380 00:21:28,000 --> 00:21:31,760 Speaker 1: There's obviously risk in that we monetary policy is famously 381 00:21:31,840 --> 00:21:35,480 Speaker 1: a blunt tool, and there's risk that weaker outcomes are 382 00:21:35,520 --> 00:21:38,359 Speaker 1: certainly possible, but they're not our intent. Fans here, j 383 00:21:38,520 --> 00:21:42,160 Speaker 1: Powell to lawmakers the economy is strong and well positioned 384 00:21:42,200 --> 00:21:46,040 Speaker 1: to handle tighter monetary policy. Markets gave up early gains 385 00:21:46,080 --> 00:21:49,400 Speaker 1: Karen on Powell's recession comments, Jeanette Garritty, E chief economist 386 00:21:49,400 --> 00:21:52,520 Speaker 1: with Robertson Stephen, says, as recession talk grows, we could 387 00:21:52,520 --> 00:21:55,640 Speaker 1: see inflations start to come down. I don't think it's 388 00:21:55,760 --> 00:21:58,400 Speaker 1: firmly rooted, and there are awful lot of people who 389 00:21:58,400 --> 00:22:01,080 Speaker 1: are now beginning to think about recession, and in thinking 390 00:22:01,080 --> 00:22:04,159 Speaker 1: about recession, actually do believe that that will take the 391 00:22:04,280 --> 00:22:07,760 Speaker 1: pressure off prices. Jeanette Garritty with Robertson Stephen says she 392 00:22:07,800 --> 00:22:11,000 Speaker 1: believes j Pal's credibility is no longer an issue. Well, 393 00:22:11,040 --> 00:22:13,320 Speaker 1: let's turned to oil now, Nathan, which is lower once 394 00:22:13,359 --> 00:22:17,880 Speaker 1: again as concerns over a global economic slowdown intensify. Meantime, 395 00:22:17,920 --> 00:22:21,160 Speaker 1: President Biden is continuing his push to ease gas prices. 396 00:22:21,280 --> 00:22:24,000 Speaker 1: Bloomberg's Nia Young joins US Live with more Good Morning 397 00:22:24,160 --> 00:22:26,680 Speaker 1: nied Down, Good Morning Care and President Biden is running 398 00:22:26,680 --> 00:22:29,399 Speaker 1: out of options to eat prices at the pump, and 399 00:22:29,440 --> 00:22:32,359 Speaker 1: in his latest action, he proposes a three month gas 400 00:22:32,359 --> 00:22:35,879 Speaker 1: tax holiday, urging gas stations to play their part. I 401 00:22:36,000 --> 00:22:40,320 Speaker 1: call on the company's to pass this along every penny 402 00:22:40,359 --> 00:22:43,639 Speaker 1: of this eighteenth cent reduction to the consumers. This is 403 00:22:43,800 --> 00:22:47,400 Speaker 1: there's no time now for profiteering. It's a long shot 404 00:22:47,480 --> 00:22:50,199 Speaker 1: for President Biden, as lawmakers on both sides of the 405 00:22:50,240 --> 00:22:53,600 Speaker 1: aisle quickly signaled they have little appetite for the move. 406 00:22:54,160 --> 00:22:56,840 Speaker 1: Live in New York, I'm rened a Young Bloomberg Day Break. 407 00:22:56,880 --> 00:22:58,840 Speaker 1: All right, we need to thank you. Another major story 408 00:22:58,880 --> 00:23:01,440 Speaker 1: we're watching in Washington in this morning. A gun safety 409 00:23:01,480 --> 00:23:04,560 Speaker 1: bill could soon pass the Senate Majority leader Chuck Schumer 410 00:23:04,600 --> 00:23:07,000 Speaker 1: hopes for approval by the end of the week, and 411 00:23:07,080 --> 00:23:11,320 Speaker 1: Nathan turning overseas, European Union leaders planned a grant candidate 412 00:23:11,400 --> 00:23:14,359 Speaker 1: status to Ukraine. The move will come at the EU summit. 413 00:23:14,400 --> 00:23:17,000 Speaker 1: That's beginning today in Brussels, Ukraine will have to meet 414 00:23:17,040 --> 00:23:20,440 Speaker 1: a set of conditions before joining the EU, and S 415 00:23:20,520 --> 00:23:24,560 Speaker 1: ANDP futures are now little change, down futures down forty three, 416 00:23:24,720 --> 00:23:28,240 Speaker 1: nasday futures up forty and the tenure Treasury at fifteen 417 00:23:28,280 --> 00:23:31,000 Speaker 1: thirty seconds yeld three point nine percent. Straight ahead your 418 00:23:31,040 --> 00:23:33,960 Speaker 1: latest local headlines plus a check of sports. This is 419 00:23:34,000 --> 00:23:40,960 Speaker 1: Bloomberge on Wall Street, sixty one degrees in Central Park 420 00:23:41,000 --> 00:23:43,359 Speaker 1: scenes and work on the northbound Van Wick and Michael 421 00:23:43,359 --> 00:23:45,320 Speaker 1: Barr has more on what's going on in New York 422 00:23:45,359 --> 00:23:47,639 Speaker 1: and around the world. Michael, thank you very much. Nathan. 423 00:23:47,760 --> 00:23:49,800 Speaker 1: If you're not getting Internet, it's not the fault of 424 00:23:49,840 --> 00:23:53,640 Speaker 1: your set. There are reports of a widespread internet outage 425 00:23:53,640 --> 00:23:58,400 Speaker 1: with Verizon, according to down Detector. User reports indicate problems 426 00:23:58,400 --> 00:24:00,840 Speaker 1: at Verizon this morning. Today was on the nature of 427 00:24:00,840 --> 00:24:03,719 Speaker 1: the outage are limited at the moment. In Texas, the 428 00:24:03,800 --> 00:24:07,679 Speaker 1: Uvaldi School District has placed police chief Pete Rodondo on 429 00:24:07,720 --> 00:24:11,520 Speaker 1: administrative leave. Nineteen students and two teachers were killed as 430 00:24:11,560 --> 00:24:14,199 Speaker 1: police officers stood by for more than an hour at 431 00:24:14,320 --> 00:24:18,000 Speaker 1: rob Elementary School. Meanwhile, the state Senator filed a lawsuit 432 00:24:18,000 --> 00:24:21,640 Speaker 1: against the Texas Department of Public Safety to access records 433 00:24:21,680 --> 00:24:25,320 Speaker 1: on the investigation into last month shooting Democratic State Senator 434 00:24:25,440 --> 00:24:30,920 Speaker 1: rolland to terrace. This was a failure at every level. Uh, 435 00:24:31,000 --> 00:24:36,399 Speaker 1: not just the local cops, shriff, the police, DPS. We 436 00:24:36,440 --> 00:24:39,960 Speaker 1: all had people in there. Texas State Senator gu terrorists 437 00:24:39,960 --> 00:24:42,680 Speaker 1: told k t RK he flowled the lawsuit on A 438 00:24:42,840 --> 00:24:46,080 Speaker 1: thirty one, but has not heard anything yet. The January 439 00:24:46,119 --> 00:24:49,119 Speaker 1: six committee will hear from former Justice Department officials who 440 00:24:49,200 --> 00:24:52,960 Speaker 1: faced down a relentless pressure campaign from Donald Trump over 441 00:24:53,000 --> 00:24:56,880 Speaker 1: the presidential election results. Today's hearing aims to show how 442 00:24:56,920 --> 00:25:00,400 Speaker 1: Trump tried to leverage the authorities of federal ex Ecutive 443 00:25:00,440 --> 00:25:04,200 Speaker 1: Branch agencies in pursuing his false claims of election fraud. 444 00:25:04,640 --> 00:25:07,840 Speaker 1: The FAA is investigating a helicopter crash in Logan County, 445 00:25:07,880 --> 00:25:11,160 Speaker 1: West Virginia that killed six people. Officials say that Huey 446 00:25:11,240 --> 00:25:15,119 Speaker 1: helicopter went down on the rural roadway last evening. Logan 447 00:25:15,160 --> 00:25:20,800 Speaker 1: Mayor Safino no Letting very heart ranching. Why not we 448 00:25:20,920 --> 00:25:26,280 Speaker 1: heard what happened? Yeah, there's people in they called Megan. 449 00:25:26,640 --> 00:25:30,240 Speaker 1: One of us was a mayor. Serafino no Letty says 450 00:25:30,280 --> 00:25:32,720 Speaker 1: the chopper was based out of Logan County Airport and 451 00:25:32,800 --> 00:25:37,160 Speaker 1: was apparently used for tourist flights. Federal prosecutors say Glane Maxwell, 452 00:25:37,200 --> 00:25:39,840 Speaker 1: the British socialite convicted of engaging in a ten years 453 00:25:39,840 --> 00:25:44,520 Speaker 1: sex trafficking scheme with former boyfriend Jeffrey Epstein, deserved to 454 00:25:44,600 --> 00:25:48,119 Speaker 1: spend at least thirty years in prison. Maxwell will be 455 00:25:48,200 --> 00:25:51,560 Speaker 1: sentenced to Global News twenty four hours a day on 456 00:25:51,680 --> 00:25:54,840 Speaker 1: airand on Bloomberg Quick Take, powered by more than twenty 457 00:25:54,880 --> 00:25:58,119 Speaker 1: seven hundred journalists and analyst more than a hundred twenty countries. MICHAELA. 458 00:25:58,160 --> 00:26:06,520 Speaker 1: Bar This is Bloomberg, Nickel. Thanks Michael on Wall Street 459 00:26:06,600 --> 00:26:09,840 Speaker 1: on Sinshrist. The Bloomberg Sports Update anks Nathan more surprising 460 00:26:09,880 --> 00:26:12,640 Speaker 1: than Aaron Judge having hit twenty seven home run six 461 00:26:12,680 --> 00:26:15,200 Speaker 1: more than anyone else in baseball, is that Jose Trevino 462 00:26:15,280 --> 00:26:18,400 Speaker 1: has hit six and only had five last season with Texas. 463 00:26:18,400 --> 00:26:22,160 Speaker 1: Travino acquired just before the season began, far exceeded expectations, 464 00:26:22,160 --> 00:26:23,520 Speaker 1: and he won the game for the Yankees with a 465 00:26:23,520 --> 00:26:25,359 Speaker 1: two run homer eighth dinning and a night where Judge 466 00:26:25,400 --> 00:26:28,639 Speaker 1: homer twice. Yankees came from four one down beat Tampa 467 00:26:28,680 --> 00:26:31,680 Speaker 1: Bay five to four. Mets in Houston, trailed four nothing 468 00:26:31,760 --> 00:26:33,920 Speaker 1: first and even lost five to three of The Astros 469 00:26:33,960 --> 00:26:36,399 Speaker 1: started four game series with the Yanks tonight at the 470 00:26:36,440 --> 00:26:38,800 Speaker 1: Stadium for Hacks. The playoff preview the Yankees in the 471 00:26:38,800 --> 00:26:41,120 Speaker 1: East by twelve games in the Astros in the West 472 00:26:41,400 --> 00:26:45,000 Speaker 1: by ten overtime and controversy at the Stanley Cup Final, 473 00:26:45,000 --> 00:26:47,560 Speaker 1: where Tampa Bay scored the opening minute, never trailed Game 474 00:26:47,640 --> 00:26:51,560 Speaker 1: four until Colorado's Nazeem Cadre's goal twelve minutes into ot 475 00:26:51,720 --> 00:26:54,240 Speaker 1: The Lightning felt a too many men on the ice 476 00:26:54,280 --> 00:26:56,320 Speaker 1: penalty should have been called, but the As one three two. 477 00:26:56,359 --> 00:26:59,000 Speaker 1: As Cadre gets the game winner in his first games 478 00:26:59,080 --> 00:27:00,680 Speaker 1: was breaking his thumb a few weeks ago, and the 479 00:27:00,760 --> 00:27:02,640 Speaker 1: As now lead the series three one. They can win 480 00:27:02,720 --> 00:27:07,000 Speaker 1: the Cup at home tomorrow night. NBA draft tonight in Brooklyn, Orlando, 481 00:27:07,080 --> 00:27:10,000 Speaker 1: as the first pick, the NIXT pick eleven, and Nets 482 00:27:10,000 --> 00:27:13,440 Speaker 1: do not have any picks. NFL Commissioner Roger Goodell testified 483 00:27:13,520 --> 00:27:17,399 Speaker 1: virtually before a congressional committee looking into workplace violations by 484 00:27:17,440 --> 00:27:21,199 Speaker 1: the Washington Commander's. Goodell insisted owner Dan Snyder is not 485 00:27:21,359 --> 00:27:23,520 Speaker 1: involved in running the team. He said he does not 486 00:27:23,640 --> 00:27:27,120 Speaker 1: have the power to remove Snyder, who has refused to testify, 487 00:27:27,240 --> 00:27:30,399 Speaker 1: may now be subpoened. Tragic day for the Baltimore Ravens 488 00:27:30,400 --> 00:27:33,280 Speaker 1: the death of linebacker Jalen Ferguson only twenty six no 489 00:27:33,400 --> 00:27:35,920 Speaker 1: cause of death, val play ruled out, and the passing 490 00:27:35,960 --> 00:27:40,240 Speaker 1: of former defensive lineman Tony Saragosa he was fifty five. Goose, 491 00:27:40,680 --> 00:27:43,160 Speaker 1: also played for the Colts, was now a Fox analyst. 492 00:27:43,480 --> 00:27:46,600 Speaker 1: John Stashower Bloomberg Sports Nathan all Right. John thanks High 493 00:27:46,600 --> 00:27:48,600 Speaker 1: thirty seven on Wall Street Time for the Tri State 494 00:27:48,640 --> 00:27:51,720 Speaker 1: Business Report with Bloomberg's head Corey. It's getting harder to 495 00:27:51,760 --> 00:27:55,080 Speaker 1: find an affordable apartment in New York City. You need 496 00:27:55,119 --> 00:27:57,359 Speaker 1: to make at least one hundred ten thousand dollars a 497 00:27:57,440 --> 00:28:00,800 Speaker 1: year to afford the median asking rent of twenty seven 498 00:28:00,920 --> 00:28:04,560 Speaker 1: hundred and fifty dollars median rent in Manhattan sward to 499 00:28:04,640 --> 00:28:08,399 Speaker 1: an eye popping four thousand dollars for market rate apartments. 500 00:28:08,400 --> 00:28:12,560 Speaker 1: In May, New Jersey will suspend sales tax collection for 501 00:28:12,600 --> 00:28:16,359 Speaker 1: ten days on back to school purchases, saving buyers about 502 00:28:16,400 --> 00:28:19,639 Speaker 1: seventy five million dollars. The discount will be in effect 503 00:28:19,640 --> 00:28:23,840 Speaker 1: from August to September five. It will apply to basic goods, 504 00:28:23,840 --> 00:28:27,199 Speaker 1: as well as higher priced items like computers. Although it 505 00:28:27,240 --> 00:28:30,440 Speaker 1: doesn't have a store in the Hamptons, Sacks Fifth Avenue 506 00:28:30,480 --> 00:28:33,679 Speaker 1: is making its presence known out East throughout the summer. 507 00:28:33,720 --> 00:28:37,399 Speaker 1: It's hosting a series of dinners with designers, influencers and media. 508 00:28:37,800 --> 00:28:41,080 Speaker 1: It'll throw a celebratory dinner July fourteenth at the new 509 00:28:41,120 --> 00:28:45,360 Speaker 1: Southampton location of the Lobster Roll. That's your Bloomberg Dry 510 00:28:45,400 --> 00:28:49,320 Speaker 1: State Business Report. I'm ind Corey. Thanks on Wall Street 511 00:28:49,320 --> 00:28:51,960 Speaker 1: Bloomberg Radios on the air from San Francisco to New York, 512 00:28:52,000 --> 00:28:54,240 Speaker 1: London to Hong Kong. Let's check in with our global 513 00:28:54,280 --> 00:28:55,880 Speaker 1: news team for some of the top stories heard on 514 00:28:55,960 --> 00:29:01,000 Speaker 1: our three hundred affiliate radio stations around the world. I'm 515 00:29:01,000 --> 00:29:03,680 Speaker 1: Steve Poliskan on ten ten Wins in New York. We're 516 00:29:03,680 --> 00:29:07,600 Speaker 1: talking about big job cuts at JP Morgan's home lending business. 517 00:29:08,600 --> 00:29:11,880 Speaker 1: I'm Jeff Pollinger and on w k D and in Columbus, 518 00:29:11,920 --> 00:29:15,680 Speaker 1: I'm talking about how inflation has eaten away in American's 519 00:29:15,760 --> 00:29:19,800 Speaker 1: emergency saving I'm cal I head killed Bloombeg DAB Digital 520 00:29:19,880 --> 00:29:23,200 Speaker 1: Radio in Onto waverporting on Germany, triggering the next stage 521 00:29:23,200 --> 00:29:26,800 Speaker 1: of its emergency gas plan which could see consumers paying 522 00:29:26,840 --> 00:29:31,640 Speaker 1: moved I made Gory on ww J and Detroit reporting 523 00:29:31,720 --> 00:29:36,040 Speaker 1: Auto Executives one, Lawmakers with Strength, and semiconductors of blind change. 524 00:29:36,640 --> 00:29:38,760 Speaker 1: And those are some of the stories our twenty hundred 525 00:29:38,760 --> 00:29:41,280 Speaker 1: Bloomberg journalists and analysts are working on this morning around 526 00:29:41,320 --> 00:29:43,719 Speaker 1: the world. It's five thirty nine on Wall Street. The 527 00:29:43,760 --> 00:29:47,920 Speaker 1: following is an editorial from Bloomberg Opinion. In the chaos 528 00:29:47,920 --> 00:29:51,520 Speaker 1: of Latin American politics, Columbia has in recent years looked 529 00:29:51,560 --> 00:29:55,120 Speaker 1: like an island of stab building now changes certain. On Sunday, 530 00:29:55,240 --> 00:29:59,200 Speaker 1: voters elected leftist Gustavo Petro, a former guerrilla, as their 531 00:29:59,280 --> 00:30:02,280 Speaker 1: next president. Petro should learn from the experience of other 532 00:30:02,400 --> 00:30:05,960 Speaker 1: anti establishment leaders in the region. Without broad support and 533 00:30:06,120 --> 00:30:08,880 Speaker 1: an I on public finances, he won't be able to 534 00:30:08,920 --> 00:30:12,880 Speaker 1: deliver the improved living conditions that voters demand. In Colombia, 535 00:30:13,040 --> 00:30:16,680 Speaker 1: which lost its investment grade status last year, has little 536 00:30:16,760 --> 00:30:19,280 Speaker 1: room for air. Although its economy has made a good 537 00:30:19,280 --> 00:30:23,800 Speaker 1: recovery from COVID nineteen, deep seated problems remain. A botched 538 00:30:23,800 --> 00:30:26,840 Speaker 1: tax reform last year led to weeks of violent protests, 539 00:30:27,160 --> 00:30:30,520 Speaker 1: and inequality is pronounced even by the standards of the region. 540 00:30:30,720 --> 00:30:34,880 Speaker 1: Petro would do well to seek out experience, technocratic advisors 541 00:30:35,200 --> 00:30:39,040 Speaker 1: who are prepared to meet the country's challenges. Populism alone 542 00:30:39,440 --> 00:30:43,040 Speaker 1: is no remedy for Columbia's hills. This editorial was written 543 00:30:43,080 --> 00:30:46,400 Speaker 1: by the Bloomberg Opinion Editorial Board. I'm David Shipley. For 544 00:30:46,480 --> 00:30:49,320 Speaker 1: more Bloomberg opinion, please go to Bloomberg dot com, slash 545 00:30:49,320 --> 00:30:53,000 Speaker 1: Opinion or Opango on the Bloomberg terminal. This has been 546 00:30:53,080 --> 00:30:56,680 Speaker 1: Bloomberg Opinion, and you can hear Bloomberg opinion editorials every weekday. 547 00:30:56,680 --> 00:30:59,760 Speaker 1: At this time, terminal customers can read more at OPI 548 00:31:00,200 --> 00:31:03,360 Speaker 1: end go. Futures little changed as we wait day two 549 00:31:03,600 --> 00:31:07,040 Speaker 1: of testimony from Fed Chairman Jerome Powell on Capitol Hill. 550 00:31:07,160 --> 00:31:09,760 Speaker 1: Right now, SMP futures are up four points down, futures 551 00:31:09,800 --> 00:31:14,760 Speaker 1: down thirty five NASTACK futures up fifty four points. You're 552 00:31:14,840 --> 00:31:24,479 Speaker 1: listening to Bloomberg Daybreak Bloomberg eleven three oh. Weather cloudie 553 00:31:24,480 --> 00:31:26,400 Speaker 1: through the morning with highs in the low seventies today. 554 00:31:26,440 --> 00:31:28,360 Speaker 1: We'll get into the low eighties tomorrow under a mix 555 00:31:28,400 --> 00:31:32,320 Speaker 1: of sun and clouds, mostly sunny, warmer for Saturday, oper eighties. 556 00:31:32,640 --> 00:31:38,400 Speaker 1: Right now sixty one in Central Park markets, headlines and 557 00:31:38,480 --> 00:31:41,760 Speaker 1: breaking news twenty four hours a day at Bloomberg dot com, 558 00:31:41,880 --> 00:31:45,000 Speaker 1: the Bloomberg Business Out and at Bloomberg Quick Tape. This 559 00:31:45,360 --> 00:31:54,400 Speaker 1: is a Bloomberg Business Flash and I'm Karen Moscow and 560 00:31:54,440 --> 00:31:58,200 Speaker 1: European stocks are rich. Treating bond yields are tumbling is 561 00:31:58,280 --> 00:32:01,480 Speaker 1: commenced by Federal Reserve Chair J. Powell and growth data 562 00:32:01,480 --> 00:32:05,320 Speaker 1: in Europe. Stoke fear about a global downturn, oil extending 563 00:32:05,400 --> 00:32:08,920 Speaker 1: losses and US stock index futures They're mostly higher. We 564 00:32:09,040 --> 00:32:11,360 Speaker 1: check the markets every fifteen minutes throughout the trading day 565 00:32:11,400 --> 00:32:14,320 Speaker 1: on bloomberg s and P futures up eight points now, 566 00:32:14,440 --> 00:32:17,240 Speaker 1: futures that will change downs day futures up sixty eight 567 00:32:17,520 --> 00:32:19,959 Speaker 1: The decks in Germany's down one percent, the ten year 568 00:32:20,000 --> 00:32:22,760 Speaker 1: treasury up thirteen thirty seconds. He'll three point one zero 569 00:32:22,840 --> 00:32:26,080 Speaker 1: percent yield on the two year two point nine nine percent. 570 00:32:26,480 --> 00:32:29,120 Speaker 1: Nine max screwed oil is down one point six percent 571 00:32:29,120 --> 00:32:31,280 Speaker 1: on a dollar sixty six at a hundred four dollars 572 00:32:31,280 --> 00:32:33,680 Speaker 1: fifty two cents of barrel comex schooled at a third 573 00:32:33,680 --> 00:32:36,240 Speaker 1: of percent, or six dollars thirty cents at eighteen thirty 574 00:32:36,240 --> 00:32:39,200 Speaker 1: two fifty announced the euro one point oh five oh 575 00:32:39,200 --> 00:32:41,560 Speaker 1: three against the dollar British found one point to one 576 00:32:41,680 --> 00:32:43,760 Speaker 1: nine nine and the ends at one thirty five point 577 00:32:43,800 --> 00:32:46,440 Speaker 1: four to. And look at a bitcoin this morning, moving 578 00:32:46,560 --> 00:32:49,360 Speaker 1: higher up three point four percent at twenty thousand, five 579 00:32:49,440 --> 00:32:52,720 Speaker 1: hundred dollars. That's at Bloomberg Business Flash. Now here's Michael 580 00:32:52,720 --> 00:32:54,840 Speaker 1: bar with more on what's going on around the world. 581 00:32:54,880 --> 00:32:57,520 Speaker 1: Michael Karen, thank you very much. There are reports of 582 00:32:57,560 --> 00:33:00,680 Speaker 1: a wide spread Internet out. It's with Verizon, that's according 583 00:33:00,680 --> 00:33:04,240 Speaker 1: to down detector. The January six Committee will hear from 584 00:33:04,280 --> 00:33:07,800 Speaker 1: former Justice Department officials today. The panelst says they face 585 00:33:07,880 --> 00:33:11,640 Speaker 1: relentless pressure from Donald Trump over the presidential election results. 586 00:33:11,920 --> 00:33:15,040 Speaker 1: The PG eight tour plans to increase purse sizes and 587 00:33:15,120 --> 00:33:17,760 Speaker 1: revamp the schedule, and an effort to keep players from 588 00:33:17,800 --> 00:33:20,880 Speaker 1: heading to the Saudi Back liv golf Series. In baseball, 589 00:33:20,920 --> 00:33:23,600 Speaker 1: the Yankees one, the Mets lost, the Orioles shut out, 590 00:33:23,640 --> 00:33:26,760 Speaker 1: the Nationals, the Red Sox one, the Giants and as lost. 591 00:33:26,920 --> 00:33:29,239 Speaker 1: In the NHL, the Avalanche or a game away from 592 00:33:29,280 --> 00:33:32,440 Speaker 1: winning the Stanley Cup after beating the Lightning. Global News 593 00:33:32,440 --> 00:33:34,920 Speaker 1: twenty four hours a day on air and on Bloomberg 594 00:33:35,000 --> 00:33:37,640 Speaker 1: Quicktake powered by more than twenty seven hundred journalist and 595 00:33:37,640 --> 00:33:40,640 Speaker 1: analysts more than a hundred twenty countries. Michael barn this 596 00:33:40,680 --> 00:33:42,840 Speaker 1: is Bloomberg. Nathan. Hi, Michael, thank you. We're coming up 597 00:33:42,880 --> 00:33:45,240 Speaker 1: to five forty nine on Wall Street Live from the 598 00:33:45,240 --> 00:33:48,680 Speaker 1: Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak. And the 599 00:33:48,720 --> 00:33:51,280 Speaker 1: words that have been reverberating in markets over the last 600 00:33:51,280 --> 00:33:55,120 Speaker 1: several hours certainly a possibility. That's what FED chaired Jerome 601 00:33:55,120 --> 00:33:58,080 Speaker 1: Powell told the Senate Banking Committee when it comes to 602 00:33:58,120 --> 00:34:03,320 Speaker 1: the risk of recession, as the FED is strongly focused 603 00:34:03,600 --> 00:34:07,440 Speaker 1: on getting inflation down to a two target. Let's get 604 00:34:07,440 --> 00:34:09,840 Speaker 1: more on this. Brett Ryan is with US now senior 605 00:34:09,920 --> 00:34:14,160 Speaker 1: US economist at Deutsche Bank Securities. Brett, good morning to 606 00:34:14,280 --> 00:34:17,680 Speaker 1: the FED chairman's comments about the risk of recession. Have 607 00:34:17,800 --> 00:34:22,160 Speaker 1: you changing your forecast? Uh? No, good morning, and thank 608 00:34:22,200 --> 00:34:24,680 Speaker 1: you for having me on the program. We've actually been 609 00:34:25,040 --> 00:34:28,400 Speaker 1: calling for a recession since really the beginning of April, 610 00:34:28,960 --> 00:34:33,120 Speaker 1: when the inflation data, you know, showed certainly more persistence 611 00:34:33,120 --> 00:34:35,000 Speaker 1: and we we thought that the FED would have to 612 00:34:35,040 --> 00:34:38,600 Speaker 1: tighten more aggressively. Uh. And that's exactly what's played out 613 00:34:38,640 --> 00:34:41,440 Speaker 1: thus far. So I think I think the fed's latest 614 00:34:41,480 --> 00:34:45,000 Speaker 1: forecast hinted that this is going to be a difficult 615 00:34:45,080 --> 00:34:48,520 Speaker 1: and more difficult landing, And I think you're seeing more 616 00:34:49,000 --> 00:34:54,480 Speaker 1: admittance on the part of federals or officials that recession 617 00:34:54,640 --> 00:34:57,880 Speaker 1: is certainly a higher probability given the amount of titaning 618 00:34:57,880 --> 00:35:00,680 Speaker 1: they need to do. Do you think we're in for 619 00:35:00,760 --> 00:35:06,120 Speaker 1: a mild recession, a moderate recession, something more prolonged. Yeah, 620 00:35:06,120 --> 00:35:09,800 Speaker 1: So we think it's more of a mild recession similar 621 00:35:09,840 --> 00:35:15,560 Speaker 1: to something like because there aren't really large imbalances that 622 00:35:15,600 --> 00:35:18,719 Speaker 1: you can identify in the economy right now other than 623 00:35:18,800 --> 00:35:23,239 Speaker 1: really elevated good spending relative disservices, and that's good spit. 624 00:35:23,360 --> 00:35:26,440 Speaker 1: That elevated good spending is part of what's causing such 625 00:35:26,520 --> 00:35:30,520 Speaker 1: high inflation right now. There is an imbalance, though, isn't 626 00:35:30,520 --> 00:35:34,640 Speaker 1: there when it comes to UH, supply versus demand? Isn't 627 00:35:34,680 --> 00:35:37,160 Speaker 1: that a lot of what's feeding into the inflation right now, 628 00:35:37,200 --> 00:35:41,320 Speaker 1: particularly in the energy market. Sure, And that's something that 629 00:35:41,400 --> 00:35:44,560 Speaker 1: share Powell was quizzed upon by by Liz Warren and 630 00:35:45,080 --> 00:35:49,080 Speaker 1: the other Senate officials UH yesterday in that you know, 631 00:35:49,160 --> 00:35:53,319 Speaker 1: can interest rates impact supply side? Is the FED raising 632 00:35:53,560 --> 00:35:57,040 Speaker 1: interest rates doesn't help in terms of bringing more oil 633 00:35:57,640 --> 00:36:01,560 Speaker 1: onto the market. Whoever, the FED does a control over 634 00:36:01,760 --> 00:36:08,279 Speaker 1: services inflation, things like rent, and that is directly impacted 635 00:36:08,920 --> 00:36:13,240 Speaker 1: by the growth and income growth and a strong job market. 636 00:36:13,640 --> 00:36:15,560 Speaker 1: So the FET is trying to cool a very hot 637 00:36:15,640 --> 00:36:18,319 Speaker 1: labor market in order to bring that that side of 638 00:36:18,360 --> 00:36:22,480 Speaker 1: the equation down because services inflation has been picking up 639 00:36:22,520 --> 00:36:25,239 Speaker 1: just as strongly as good inflation. Well, what's it going 640 00:36:25,320 --> 00:36:28,960 Speaker 1: to take, Brett for the FED to cool down the 641 00:36:29,040 --> 00:36:32,759 Speaker 1: hot labor market? He's the FED Sherman Palell says he's 642 00:36:32,800 --> 00:36:36,440 Speaker 1: strongly focused on getting inflation down to the two target. 643 00:36:36,640 --> 00:36:39,360 Speaker 1: Is it going to mean even more aggressive rate hikes 644 00:36:39,360 --> 00:36:42,440 Speaker 1: than the fet is signaled at this point? Uh? And 645 00:36:42,560 --> 00:36:45,040 Speaker 1: our view, um, yes, we are. They are going to 646 00:36:45,120 --> 00:36:48,279 Speaker 1: be need to be more aggressive. Um, we expect the 647 00:36:48,280 --> 00:36:51,319 Speaker 1: FED to reach four point one percent, so between four 648 00:36:51,360 --> 00:36:55,759 Speaker 1: and by the by March of next year. Now, the 649 00:36:55,760 --> 00:36:58,560 Speaker 1: fet IS signaled of the medium dot at least of 650 00:36:58,640 --> 00:37:01,400 Speaker 1: the dub plot is three point eight percent, So we 651 00:37:01,440 --> 00:37:03,360 Speaker 1: do think they need to be a little bit more aggressive, 652 00:37:03,920 --> 00:37:07,399 Speaker 1: But they certainly have come at a relative to where 653 00:37:07,440 --> 00:37:10,160 Speaker 1: the FED was at the March. The March meeting in 654 00:37:10,239 --> 00:37:13,000 Speaker 1: terms of tightening, they've come a long way and you've 655 00:37:13,000 --> 00:37:16,880 Speaker 1: really seen it's sort of it's a uniform consensus, you know, 656 00:37:16,960 --> 00:37:20,480 Speaker 1: across the hawk dove spectrum. Um they want to get 657 00:37:20,520 --> 00:37:22,640 Speaker 1: they're going to need to be in the restrictive territory. 658 00:37:22,760 --> 00:37:25,680 Speaker 1: So you know, they haven't decided yet how restrictive that 659 00:37:25,840 --> 00:37:28,200 Speaker 1: they need to be, but they all agree that that's 660 00:37:28,200 --> 00:37:31,399 Speaker 1: where where they're going at this point. In our last 661 00:37:31,400 --> 00:37:34,239 Speaker 1: minute here Brett, the chairman is going before the House 662 00:37:34,280 --> 00:37:38,319 Speaker 1: Financial Services Committee this morning. What message are you going 663 00:37:38,360 --> 00:37:44,720 Speaker 1: to be looking for from Chairman Powell today? Anything different? Uh? Actually, 664 00:37:44,760 --> 00:37:47,719 Speaker 1: the one thing I will look for is any reaction 665 00:37:47,880 --> 00:37:52,680 Speaker 1: to the latest European data. So the European poms missed 666 00:37:53,120 --> 00:37:57,520 Speaker 1: fairly broadly this this morning, and you know, I think 667 00:37:57,600 --> 00:38:01,840 Speaker 1: there's both services and manufacturings that so there wasn't a 668 00:38:01,920 --> 00:38:06,359 Speaker 1: really a clear identifier there in covid um and so 669 00:38:06,600 --> 00:38:09,399 Speaker 1: I'm curious to see if there's any reaction to that. 670 00:38:09,960 --> 00:38:14,600 Speaker 1: The latest data data that's changed between yesterday and today, 671 00:38:14,680 --> 00:38:17,720 Speaker 1: and that's you know, another twenty basis point rally in 672 00:38:17,760 --> 00:38:20,640 Speaker 1: the tenure German Bund, which is pretty aggressive, and so 673 00:38:20,680 --> 00:38:24,880 Speaker 1: we've had these these three large pawn market moves. The 674 00:38:25,000 --> 00:38:28,440 Speaker 1: two year yield has moved moved seventy basis points in 675 00:38:28,520 --> 00:38:32,040 Speaker 1: five trading sessions last week, and that's the largest. And 676 00:38:32,239 --> 00:38:35,959 Speaker 1: Lehman Brothers um and we've pretty much unwounded about half 677 00:38:35,960 --> 00:38:38,560 Speaker 1: of that. At the same time, the ten year yield 678 00:38:38,920 --> 00:38:41,719 Speaker 1: went from three forty seven last week to you know, 679 00:38:41,800 --> 00:38:45,480 Speaker 1: now pressing close to three. So you know, I think 680 00:38:45,520 --> 00:38:50,880 Speaker 1: the volatility, the volatility in the bond market, um shaff 681 00:38:50,880 --> 00:38:53,560 Speaker 1: how may get a few more questions about that today. 682 00:38:53,560 --> 00:38:55,680 Speaker 1: Thanks for this bred good having gone with us. Fred Ryan, 683 00:38:55,760 --> 00:38:59,600 Speaker 1: senior US economist at Deutsche Bank, Karen and Nathan, thank you. 684 00:38:59,640 --> 00:39:02,320 Speaker 1: It is at four on Wall Street. Now to a 685 00:39:02,400 --> 00:39:06,040 Speaker 1: legal story where following this morning this week, the Supreme 686 00:39:06,080 --> 00:39:09,239 Speaker 1: Court once again ruled in favor of religious rights over 687 00:39:09,280 --> 00:39:12,560 Speaker 1: a robust separation of church and state. In a six 688 00:39:12,680 --> 00:39:15,879 Speaker 1: or three decision down ideological lines, the Justice is ruled 689 00:39:15,920 --> 00:39:19,600 Speaker 1: that man cannot exclude religious schools from a program that 690 00:39:19,680 --> 00:39:23,840 Speaker 1: pays for private instruction in rural areas that lack public schools, 691 00:39:23,880 --> 00:39:26,400 Speaker 1: opening the door to more use of public dollars for 692 00:39:26,480 --> 00:39:29,920 Speaker 1: religious schools. In a case with implications beyond that state 693 00:39:30,239 --> 00:39:33,600 Speaker 1: for more Bloomberg. June Grosso speaks to Richard Garnett, a 694 00:39:33,640 --> 00:39:37,400 Speaker 1: professor at Notre Dame Law School. What does this ruling 695 00:39:37,680 --> 00:39:43,440 Speaker 1: stand for? Well, this decision reaffirms the principle that the 696 00:39:43,520 --> 00:39:48,319 Speaker 1: Justices have applied in several recent cases, and that is 697 00:39:48,960 --> 00:39:52,799 Speaker 1: that the free exercise clause of the Constitution does not 698 00:39:53,000 --> 00:39:59,520 Speaker 1: permit governments to exclude or to discriminate against religious entities 699 00:39:59,600 --> 00:40:02,840 Speaker 1: or in the jules, when they're operating a benefit program 700 00:40:02,960 --> 00:40:05,560 Speaker 1: or a funding program. So a simpler way of putting that, 701 00:40:05,600 --> 00:40:08,400 Speaker 1: I suppose might be that the free exercise clause of 702 00:40:08,480 --> 00:40:12,080 Speaker 1: the First Amendment doesn't permit governments to discriminate against religion. 703 00:40:12,239 --> 00:40:16,520 Speaker 1: And in the Carson case, the Justices applied that principle 704 00:40:16,840 --> 00:40:20,480 Speaker 1: to conclude that the state of Mainz policy, which is 705 00:40:20,560 --> 00:40:25,040 Speaker 1: to allow parents in rural school districts to get public 706 00:40:25,040 --> 00:40:29,120 Speaker 1: support to send their kids to some private schools, was 707 00:40:29,480 --> 00:40:34,640 Speaker 1: unconstitutional because Maine denied similar benefits to parents if they 708 00:40:34,760 --> 00:40:38,960 Speaker 1: chose a religious school. And the Court said, relying on 709 00:40:39,040 --> 00:40:43,200 Speaker 1: these recent precedents, that discrimination simply on the basis of 710 00:40:43,320 --> 00:40:47,239 Speaker 1: the school's religious character violate the free exercise guarantee of 711 00:40:47,560 --> 00:40:53,040 Speaker 1: the First amendment, is this making taxpayers fund religious education? Well, uh, 712 00:40:53,360 --> 00:40:57,439 Speaker 1: soul no, because the Court was very careful to say 713 00:40:57,440 --> 00:40:59,960 Speaker 1: that states don't have to fund religious schools if they 714 00:41:00,000 --> 00:41:03,120 Speaker 1: don't want to. But once the state decides that it 715 00:41:03,239 --> 00:41:07,160 Speaker 1: wants to fund some private education, then it can't discriminate 716 00:41:07,200 --> 00:41:11,680 Speaker 1: against religious schools. Now, the upshot of that is that indirectly, 717 00:41:12,000 --> 00:41:15,520 Speaker 1: because you know, the stable assist parents to choose to 718 00:41:15,520 --> 00:41:19,080 Speaker 1: send kids to school where they will receive religious instruction, Indirectly, 719 00:41:19,640 --> 00:41:23,200 Speaker 1: the parents decision to seek out religious instruction is being supported. 720 00:41:23,320 --> 00:41:27,480 Speaker 1: But of course the states indirectly pay for some religious 721 00:41:27,560 --> 00:41:31,319 Speaker 1: education all the time. You know, the g I Bill 722 00:41:31,400 --> 00:41:34,680 Speaker 1: for more than seventy years has been paying for people 723 00:41:34,719 --> 00:41:37,919 Speaker 1: to attend Boston College and the Game. So I think 724 00:41:38,000 --> 00:41:41,680 Speaker 1: the language of forcing overlooks the point that it's it's 725 00:41:41,719 --> 00:41:45,239 Speaker 1: the state's choice whether or not to create a program 726 00:41:45,520 --> 00:41:48,680 Speaker 1: that's open to some private schools but not others. And 727 00:41:48,719 --> 00:41:51,840 Speaker 1: as Richard Garnett, a professor at Notre Dame Law School, 728 00:41:51,880 --> 00:41:54,719 Speaker 1: speaking with Bloomberg to Juan Grosso. Catch more in that 729 00:41:54,760 --> 00:41:58,320 Speaker 1: interview plus analysis of the latest legal news by subscribing 730 00:41:58,320 --> 00:42:01,239 Speaker 1: to the Bloomberg Law Podcast or downloading the show at 731 00:42:01,239 --> 00:42:04,560 Speaker 1: Bloomberg dot com slash podcast. Attorneys can find exception on 732 00:42:04,640 --> 00:42:08,040 Speaker 1: legal research and business development tools at Bloomberg Law dot 733 00:42:08,080 --> 00:42:10,759 Speaker 1: com and on the Bloomberg terminal at b law Go. 734 00:42:11,440 --> 00:42:15,480 Speaker 1: And futures this morning are starting to strengthen. US and 735 00:42:15,520 --> 00:42:18,680 Speaker 1: P futures up about twelve points, down features up twenty 736 00:42:18,719 --> 00:42:21,839 Speaker 1: six and nastday futures up seventy eight. The ten year 737 00:42:21,880 --> 00:42:25,080 Speaker 1: treasury up eleven thirty seconds. You have three point one 738 00:42:25,160 --> 00:42:27,960 Speaker 1: one percent and the yield on the two year three 739 00:42:28,160 --> 00:42:31,680 Speaker 1: point o percent. Nine Max Scrude oil is down one 740 00:42:31,680 --> 00:42:33,760 Speaker 1: point one percent out of dollar twelve and a hundred 741 00:42:33,760 --> 00:42:36,520 Speaker 1: five dollars seven cents of barrel co mix school down 742 00:42:36,560 --> 00:42:38,560 Speaker 1: a third of a percent, or six dollars thirty cents 743 00:42:38,560 --> 00:42:43,280 Speaker 1: at eighteen thirty two. Ten announce and Bloomberg Daybreak continues. 744 00:42:43,640 --> 00:42:45,120 Speaker 1: This is Bloomberg